US consumer spending rises fastest in 6 years; India growth impresses; air traffic grows globally; 'temporary tax' may go permanent in Australia; UST 10yr yield 1.84%; oil and gold unchanged; NZ$1 = 67.6 US¢, TWI-5 = 71.8

Here's my summary of the key events overnight that affect New Zealand, with news some big economies are showing good signs of growth.

Firstly, in the US consumer spending recorded its biggest increase in more than six years in April as households stepped up purchases of cars. The metric the US Fed watches closely, PCE (personal consumption expenditure) rose +1.6% year-on-year. None of this will dissuade the Fed from its clearly signaled desire to raise benchmark interest rates 'soon'. Their next scheduled review is in two weeks on June 16.

They will also have noted the drop in consumer confidence however. This latest reading comes after another respected survey showed it improving. So all even on this score at present.

Consumer spending is also rising at a brisk pace in India, pushing economic growth to +7.6% in the past year. This base in consumer spending actually makes India's economic progress look more sustainable than China's.

IATA has released data for global airfreight traffic in April and that shows a year-on-year growth of +3.2%. Growth was particularly strong in North America, Europe, and the Middle East. Passenger traffic grew even faster, up +4.6%.

Later today, we will get the Aussie Q1 GDP data. The expectation is that it will come it better than expected (+2.8% 'real') because their current account deficit improved, driven by a surprisingly strong improvement in 'net exports'. (Our Q1 GDP result is not due until June 16.)

In staying in Australia, their election campaign is proving the old adage "there is nothing more permanent than a temporary tax'. The poll-leading Labor Party has confirmed that it will make their 3% 'deficit levy', which took the top personal income rate to 49%, permanent.

In New York the benchmark UST 10yr yield is basically unchanged at 1.84%.

The oil price is also basically unchanged today with both the US benchmark and the Brent benchmark just over US$49/barrel.

The gold price is slightly higher at US$1,218/oz.

And finally, the NZ dollar will start today just fractionally higher at 67.6 US¢, at 93.5 AU¢, and at 60.7 euro cents. The TWI-5 index is now at 71.8. And you should also note that overnight the Chinese authorities have allowed their currency to slip to its weakest against the benchmark US dollar in more than five years.

If you want to catch up with all the local changes yesterday, we have an update here.

The easiest place to stay up with event risk today is by following our Economic Calendar here ».